Objectives

« Due to changes in health conditions related to COVID-19, course modalities may be adapted during the semester. »

This class is an introduction to the concepts and tools of Microeconomic analysis. We will cover the classic topics of consumer choice, production theory, market equilibrium, and social choice and welfare. We will essentially cover Chapters 1 - 5 of Jehle and Reny's advanced microeconomic theory book (Advanced Microeconomic Theory, 3rd Edition, Prentice Hall, 2011).

Contents

1. Consumer choice:

• Preferences and utility functions
• Utility maximization and properties of consumer demand.
• Choice under uncertainty

[Chapters 1 - 2 in Jehle-Reny, Chapters 2 - 3, 6 in Mas-Colell et. al., and
Chapters 7 - 11 in Varian]

2. Production theory:

• Profit maximization and cost minimization.
• Monopoly

[Chapter 3 in Jehle-Reny, Chapters 5, 12 in Mas-Colell et. al., and
Chapters 1 – 5, 14 in Varian]

3. Market equilibrium:

• Competitive markets
• General equilibrium

[Chapters 4 - 5 in Jehle-Reny, Chapters 15-17, 19 in Mas-Colell et. al., and Chapters 13, 17-18 in Varian]

References

We will mainly use Jehle and Reny's advanced microeconomic theory book (Advanced Microeconomic Theory, 2011, 3rd Edition, Prentice Hall, 2011, ISBN 978-0-273-73191-7, paper back edition). Students should have access to a copy of this book during the course.

Two other standard references for graduate microeconomics are Microeconomic Theory by Andreu Mas-Colell, Michael D. Whinston and Jerry R. Green (Oxford University Press) and Microeconomic Analysis by Hal R. Varian (third edition; New York: W.W. Norton).

Pre-requisites

Students who do not feel comfortable with calculus and standard mathematical tools for economists are strongly advised to consult and work with Martin Osborne's tutorial site http://www.economics.utoronto.ca/osborne/MathTutorial/ (the strong point of this tutorial is that it provides exercises with solutions and thus students can practice on their own).

For this course Chapter 3 on Concavity and Convexity and Chapter 6 on Optimization: Equality Constraints will be particularly relevant.

Furthermore a standard microeconomics background on the level of intermediate microeconomics is strongly recommended.

Due to changes in health conditions related to COVID-19, course modalities may be adapted during the semester.

Evaluation

First attempt

Exam:

Written 3h00 hours

Documentation:

Not allowed

Calculator:

Allowed with restrictions

Evaluation:

If exam takes place on site: written exam, 3 hours, closed-book, max{(25% bonus grade + 75% final exam grade), final exam grade}, only non-programmable calculators are allowed.

Retake

Exam:

Written 3h00 hours

Documentation:

Not allowed

Calculator:

Allowed with restrictions

Evaluation:

Rattrapage, will take place on site: written exam, 3 hours, closed-book (100%), only non-programmable calculators are allowed.